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Cramer: 2 Overlooked Trades
27 Mar 2012 EDT - CNBC.com

Investors who are quick to sell without asking the right questions are “dead wrong,” Cramer said on Tuesday’s “Mad Money.”

This strategy worked in 2011, though. Last year, investors made money by selling off of a single bad news story or following one bad analyst report. In 2012, though, things have changed.

“This time the negative reports are outliers, so they create opportunities,” Cramer said. “You’ve got two of them right now in the oil service plays and Dollar General .”

The oil service stocks continue to take a hit on a single piece of bad news: quarterly results from Baker Hughes . Unlike its competitors, Baker Hughes made the decision to invest in its natural gas ventures. Many nat gas producers are currently cutting back on drilling, though, because the price of the commodity is too low to justify spending money to drill for it. Nevertheless, the entire sector is selling off on the news, even though many companies have shifted away from nat gas and currently have little exposure.

Elsewhere in the market, the dollar stores have been on fire lately and Family Dollar is scheduled to report earnings on Wednesday morning. The stock has been a real laggard lately, Cramer said, but that’s because it just hasn’t been executing well lately. So if Family Dollar does report a sour quarter, Cramer thinks there might be an opportunity to buy shares of Dollar General on weakness.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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